Costain cuts payments to company pension scheme

Monthly payments to the outlined pension scheme had elevated to an annual fee of practically £12m, paid in month-to-month instalments.

But a brand new deal reached with pension trustees will see the fee reduce to £3.3m a yr, plus inflationary will increase.

The scheme funding place at 31 March 2022 was a deficit of £25.1m – a funding degree of round 97%.

Going ahead an evaluation of the scheme funding place will likely be carried out every 31 March. If the funding degree is greater than 101%, Costain’s contributions will cease for a yr.  

Alex Vaughan, chief govt officer, mentioned: “This is actually optimistic information for all Costain’s stakeholders.

“It ensures we can meet the promises we have made to our defined benefit pension holders, while delivering further cash to the business and increasing the future financial and operational options for Costain.”

Aaron Morby

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